John Lewis Partnership, which owns high-end UK supermarket Waitrose, issued a stark profit warning this week for its 2018 financial year as challenges continue to mount for the UK’s retail sector.

In its latest strategy update, John Lewis Partnership said it expects first-half profits in 2018 to be “close to zero”, while full-year profits are likely to be “substantially lower” than in 2017 due to continuing market uncertainty.

In a bid to rebuild profitability in its Waitrose business, the group announced it will be shutting four convenience Waitrose stores and one small supermarket. The group said its strategy will be around product differentiation and not scale. Over half of all products sold in Waitrose stores are own-label, with plans to extend this range.

John Lewis Partnership chairman Charlie Mayfield warned that the current decline in high street retail was not a blip and will continue for some time as e-commerce continues to grow. “It is very important that we feel the jeopardy of what is happening right now,” said Mayfield.